Small Biz Health Care Daily: The More Choice-Competition Option

In an August 31 small business column for Newsday, Jamie Herzlich touches on some of the advantages for employers in offering employees health savings accounts (HSAs) or health reimbursement arrangements (HRAs). She notes that HSAs “are paired with high deductible health plans, which can be 25 percent to 30 percent cheaper that traditional managed care plans.” In addition, Herzlich points out: “An employer can contribute to an HSA, but money in the account ultimately belongs to the employee, which in turn makes him or her more conscious of health care expenditures…”

Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council, added:

“Market measures like tax-free health savings accounts (HSAs) are the kinds of reforms that Congress and the White House should be building on, rather than pushing more government involvement in health care. Big government health care will only lead to higher costs and reduced quality of care. In contrast, more choices in the marketplace – especially reforms like HSAs that make consumers and providers more conscious of costs – is exactly what the system needs. Enhanced consumer choice and control, and increased competition will boost health care quality, and help to control costs. Health care consumers do not need the ‘public’ option; they instead need the more choice-competition option.”